Never miss an update

New New In 2798 Box Women's Nike Flyknit bagisrecor-2800 Trainer Chukka 7.5 Crimson Black 805093-603 afdf339




Item specifics

Condition:
New with box: A brand-new, unused, and unworn item (including handmade items) in the original packaging (such as ... Read moreabout the condition
Brand: Nike
Fastening: Lace Up Style: Trainers
Country/Region of Manufacture: China Width: Medium (B, M)
US Shoe Size (Women's): 7.5 Color: Red
Product Line: Flyknit
Never miss an update

New New In 2798 Box Women's Nike Flyknit bagisrecor-2800 Trainer Chukka 7.5 Crimson Black 805093-603 afdf339 - blurrypron.com

    New New In 2798 Box Women's Nike Flyknit bagisrecor-2800 Trainer Chukka 7.5 Crimson Black 805093-603 afdf339
    New New In 2798 Box Women's Nike Flyknit bagisrecor-2800 Trainer Chukka 7.5 Crimson Black 805093-603 afdf339
    Asics T580N Gel Noosa Tri 10 Purple Green BLue Running Women's Shoes USED Sz 10 , Nike Womens Lunarglide 8 Shoes Black/White Size 7.5 NEW , Nike Huarache Run Sz 6.5 Women's [634835 016] Gum Bottom , Gentleman/Lady Nike Air Rift Liberty QS durable Modern and stylish fashion Vintage tide shoes , New Asics Women's T765N Gel-Contend 4 Running Shoe Sz 7.5New Balance NB Womans Running Course Athletic Trainer Shoes sz 6.5,7.5Skechers Women's Kiss - Secret Gray Casual Shoe 8.5 Women Us , Nike WMNS Air Max Invigor Woven Sports Running Shoes Cool Grey Sz 8.5 917544-001 , Puma Fierce Rope Satin En Pointe - Pink - Womens , NEW NORTH FACE STORM FASTPAC WATERPROOF LEATHER HIKING SHOE LADY 11 M/BROWN-GRAY , Nike Dual Fusion Tr 4 Print Training Shoes 819022-600 Pink Womens Sz 9.5 , New Balance 96 Off White/Brown WRT96EAA Women's SZ 5 , Skechers 23435 Air Cooled Memory Foam Slip On Walking Shoes Choose Sz/ColorNike Womens Flex 2016 RN Athletic Shoes Sneakers Blue 830751 401 New 6.5 8.5 , Nike Dunk Low 1 Piece White/White-Black 317857-111 Women's SZ 11.5Gentlemen/Ladies OTBT Women's Uleta Modern and elegant fashion Beautiful appearance Immediate deliveryAdidas Superstar 80S S81327 Casual Shoes Gray White Medium (B,M) WomenMen/Women Pleaser Women's Sky 308 Clear/Black High quality and low overhead Beautiful appearance British temperament , Nike AJ1 Lover XX SZ 6 Off White AJ1 AO1523-100 , Nike Women's Free TR 6 Athletic Running Shoes Wolf Grey/Green/Blue/White -Sz 8.5 , Bikkembergs BKE Fashion Sneaker Italy US 8 Leather Suede Back BKE 104619Joie Huxley Suede Sneaker - Women's Size US:8 / EU:38, Sandstone , Womens Nike Lunarconverge 852469-002 Anthracite Brand New Size 11 , Womens Skechers Ultra Flex Bright Future Lightweight Walking Gym Trainers , Sperry Top Sider Size 10 M SEACOAST RIPSTOP Black Sneakers New Womens Shoes , Sarto by Franco Sarto Women's Carona Slip-On Sneaker Black Suede Size 6.5 M$150 Reebok Question Mid Teyana Taylor T Women's Basketball Shoes Red Ice BD4487 , Fashion Women High platform Wedge Hidden Heel Yellow Rose Athletic Sneaker ShoesNEW NIKE ZOOM PEGASUS 31 FLASH Running Womens 7 (5.5Y) Water Repellent NIB ,
    New New In 2798 Box Women's Nike Flyknit bagisrecor-2800 Trainer Chukka 7.5 Crimson Black 805093-603 afdf339 - blurrypron.com>New New In 2798 Box Women's Nike Flyknit bagisrecor-2800 Trainer Chukka 7.5 Crimson Black 805093-603 afdf339 - blurrypron.com
    Easy Spirit Women's Caldise Pump, - Choose SZ/color , Alternativa Leather Fashion Knee High Tall Boots. Red. Made In Italy. Size 37. , Man/Woman Tory Burch Azure Bootie 8 $495 durability Known for its good quality renewed on time , Remonte Women's Shanice 71 Mid Calf BootDC Net Black Blue White Mens Leather Skate TrainersAdidas D Damian Lillard 2 Men's Baketball Shoes Basketball Shoes B42383 NewGEOX Women’s D Promethea C Loafers Prune PurpleDansko Sonja Clog Black Cabrio Leather - size US 11 - was $115Arche Women's Laius Nubuck Ballerina Flat Prunus 1114 Size US 5 , Jessica Simpson Madian 8 M Warm Taupe Beige Suede Fringed Bow Ballet Flat PumpsWomens Sexy Leopard Pointed Toe Pumps Patent Leather Stilettos Party Shoes ChicLadies Clarks Stylish Court Shoes Dancer NolinYSL YVES SAINT LAURENT Platform Booties, Black Leather, 37.5 US 7.5 , Carlos By Carlos Santana Womens NWB Serrano Black Wedge Sandals Shoes 10 MED NEW , Nike Train Speed 4 Amp Florida State Seminoles FSU Size 10 844102-617Adidas ClimaCool 1 men's life-style sneakers low-top casual shoes trainers NEWMen's Nike Air Zoom Pegasus 34 Shield Running Shoes, 907327 001 Multip Sizes BLKPUMA DRIFT CAT 5 SF-M Mens Drift Cat SF Fashion Sneaker- Choose SZ/Color.Men's Horsepower by Anderson Bean Tan Square Toe Boots, Sz 8.5Cole Haan Brown Leather Ankle Boots Mens Size 10 , ASICS-ONITSUKA TIGER - MEXICO 66 SLIP-ON (D7G0N-0701 - SIZE 7 - 40% OFFNunn Bush Men's Nantucket Plain Toe Chukka Boot Black Leatheradidas Originals Stan Smith White Grey Men Classic Shoes Sneakers CQ2206 , Amali Mens Rose Gold Sequin Circle Patterned Dress Shoe Loafer : Swirl-010 , Womens Converse All Star Chuck Taylor Shoreline Sneaker - Navy Blue - Size 6 , [BB3433] Womens Adidas Ultraboost X Ultra Boost Running Sneaker - WhiteAdidas Originals NMD R2 Womens BY9314 Black Wonder Pink Running Shoes Size 10Dansko Women's Alice Sneaker Taupe Suede/Knit SneakersSam Edelman Black Leather Heeled Zip Ankle Fashion Boots Size 8.5 MSteve Madden Women's Repell Boot - Choose SZ/Color
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    New New In 2798 Box Women's Nike Flyknit bagisrecor-2800 Trainer Chukka 7.5 Crimson Black 805093-603 afdf339 - blurrypron.com

    There’s no doubt that the last 2 years has seen the coming of age of ETFs. With what was once an unknown type of investment quickly becoming a $30b industry in Australia ($3 trillion globally). However, as ETFs have moved from the unknown to the flavour of the month, an increasing number of commentators have called on the risks ETF investors face, with some even stating that ETFs will be the source of the next market crash. Today we take a look at some of the claims as to why some believe there are so many risks associated with ETFs.

    Claim 1: ETFS are blindly pushing up stock prices

    Many have written about share markets being at record highs. In an interview with the AFR, Wilson Asset Management chief Geoff Wilson discussed his portfolios’ current high weightings to cash due to concerns of market over-valuations. 

    US based fund manager FPA capital called ETFs “Weapons of Mass Destruction”and stated “The flood of money into passive products is making stock prices move in lockstep and creating markets increasingly divorced from underlying fundamentals”. The argument they make is as ETFs blindly invest in stocks in their chosen index and ignore the underlying fundamentals of these companies. This causes these companies prices to be bid up to prices that do not support their fundamentals (ie a bubble), and eventually history repeats, the bubble bursts and markets crash.

    What do we think?

    ETFs account for around 10% of US stocks’ market value and less than 1% in Australia. In the US at least this is not an immaterial amount. However, the active managers whom ETFs have taken business from generally have mandates which force them to invest a certain percentage in the market. As a result, active managers have always been investing in expensive markets and pushing up prices. Additionally, what is currently called by many analysis as expensive equity markets could also be attributed to global record low interest rates rather than an uptick in passive investing. In saying that, since the last major market crash (the 2008 GFC), the proportion of total assets in ETFs are considerably higher and continual growth of passive investing must be considered as a possible cause of markets becoming expensive.

    Recently we’ve seen Vaneck reweight their huge Junior Gold Miner’s ETF as they approached 20% limits in some of their smaller holdings. This meant selling out of these small gold miners which saw large falls in some of these shares (some of which was blamed on hedge funds looking to capitalise on the opportunity). This is a great example of the influence that ETFs can have, albeit this is at the small end of the market.

    Claim 2: ETFs will sell on mass and compound market falls

    One of the known weaknesses of a managed fund structure is the ability for investors to fairly easily redeem their funds, meaning at times of market falls, when a fund manager may find the best investment opportunities, the investors in the fund are panicking and redeeming their investments, meaning the fund manager becomes a forced seller rather than a buyer. This was one of the reasons Forager decided to turn their Australian Share Fund (FOR) into a Listed Investment Trust, where the pool of capital for them to invest was guaranteed.

    The one thing stopping simple redemption of managed funds during market crashes is another one of its weaknesses, which is managed funds are not simple to trade, and require the investor to apply to the fund to redeem units. This can involve filling out paper forms, and an apathetic investor may simply not be bothered.

    What do we think?

    One of the greatest advantages of ETFs is also one of its weaknesses when it comes to the above, with ETFs able to be traded on the ASX, a panicked investor simply has to log into their online brokerage account and hit the sell button. If a buyer does not exist on the other side of the trade, the ETF issuer is forced to then sell the underlying holdings which could very well begin a contagion effect.

    However, we come back to the size of the ETF market, at around 1% of the Australian market and 10% of the US market. Investors selling underlying stocks that they own through their broker will have the exact same impact as the reasonably small proportion of ETFs. We believe the actual impact of this event would be not materially higher than what currently exists.

    Claim 3: ETFS with low liquidity will be hard to sell if markets fall

    Peter Switzer recently spoke about a client who had received advice that an ETF with low liquidity would be difficult to sell if markets fall. The argument being that without a liquid market the seller would be unable to find a buyer on the other side of the trade and would need to sell at a significant discount.

    What do we think?

    One of the somewhat unknown components of ETFs is the role of the market maker. Essentially the market maker’s role is to provide liquidity to an ETF, so that if there is not an existing ETF unit on the other side of an ETF trade, the market maker must create an ETF unit for a buyer, or absorb an ETF unit for a seller. It is then the ETF issuer's role to buy or sell the underlying assets that the ETF holds. This means that regardless of an ETF’s liquidity, a market maker will always exist to buy an ETF off an investor even if the markets in free fall.

    However, there is a caveat to the above. Market makers make a profit by charging a spread between the buy price and the sell price of an ETF. The spread becomes the market maker’s profit margin. In a free falling market it may be difficult for the market maker to price the underlying investments forcing them to create a huge spread between the buy and sell price to protect their margins. This was seen in the 2015 Dow Jones ‘Flash Crash’, where some ETFs dropped 30% when the market makers were unable to price the underlying securities.

    New New In 2798 Box Women's Nike Flyknit bagisrecor-2800 Trainer Chukka 7.5 Crimson Black 805093-603 afdf339 - blurrypron.com

    Finally, an ETF is only ever as liquid as its underlying holdings. ETFs which invest in illiquid investments may have great liquidity, but if the underlying investments do not, this will likely be reflected in falls in both the underlying holdings and the ETF during market falls. This may be more likely to play out at the small cap end of the sharemarket and within unlisted asset classes.

    Claim 4: ‘Exotic’ ETFs are higher risk

    In a recent RBA publication, economist Michelle Cunningham discussed the risks faced with some of the more exotic ETFs, those that are classed as ‘synthetic’ ETFs, meaning the ETF issuer does not hold the underlying investments, rather they rely on a counterparty to pay the return. These ETFs are generally referred to as ‘Synthetic’ or ‘Hedge fund’ in their title. Cunningham raised the risk that the counterparty may default on their obligation, so an additional level of risk exists for the investor.

    What do we think?

    We agree with Cunningham’s analysis, an additional level of risk certainly exists with these ETF structures, however in many cases this is the only way to access to investment strategy that the ETF provides. Nevertheless, investors should be aware of the additional risks that exist.

    Conclusion

    There’s plenty of arguments in both camps about ETFs role in future market crashes. There’s no doubt the world has moved into uncharted territory with the rise of passive investing & ETFs in particular. We do believe, however, that some of the risks are overblow. Nevertheless, investors should be aware of these risks in order to make informed investing decisions. What do you think?

     

    Previous Article

    2017 Financial Year ETF and LIC Performance Table

    Next Article

    New Fixed Interest ETFs expand options for investors

    Leave a Reply
    Find a Fund
    New New In 2798 Box Women's Nike Flyknit bagisrecor-2800 Trainer Chukka 7.5 Crimson Black 805093-603 afdf339
    Athletic Shoes
    >
    ;